In a surprise move, Tesla decided to significantly reduce prices for its electric car models, with a reduction of up to $41,000 compared to the original price. This has highlighted a notable change in the business strategy of the world’s leading electric vehicle company. However, what is more curious is why Tesla decided to make this adjustment, and the common goal with VinFast played an important role in this decision.
Tesla just announced new prices for its product line, causing the Model X to drop its starting price to $79,990 and the Model S to $74,990. This is a bold move, causing the Model This price reduction not only beats rival prices but also puts Model X on the list of tax incentives under US President Joe Biden’s policy, a noteworthy point for customers in the US.
Notably, Tesla has opposed this tax incentive policy. In December 2021, CEO Elon Musk called on the administration of US President Joe Biden to cancel this support policy, citing the impact it would have on the national budget. However, with the new policy change, Tesla has benefited from preferential tax rates of up to 7,500 USD per vehicle, providing a significant advantage in the competition in the electric vehicle market in the US.
At a conference organized by the Wall Street Journal, billionaire Elon Musk said: “I actually said to get rid of all support policies.” When asked if this opposition had anything to do with the impact Tesla wants to have on its competitors, Mr. Elon Musk said: “Maybe they will need it, I don’t know.”
An important part of the Inflation Reduction Act (IRA) signed by US President Joe Biden is a new policy to promote the development of electric vehicles in the US. Accordingly, only cars manufactured or assembled in the US will benefit from this policy. This has posed a big challenge for foreign electric vehicle manufacturers such as Hyundai and KIA, and is also creating opportunities for American car manufacturers such as Tesla and VinFast.
VinFast, a Vietnamese electric vehicle manufacturer, is taking advantage of the opportunity to enter the US market. However, to enjoy the support policy, this company’s vehicles need to meet the prescribed price threshold of 55,000 USD for sedans and 80,000 USD for SUVs. Although VinFast is building a factory in the US, completion of this factory will take place in 2025, and by then, they will face many challenges and opportunities as they participate in competition in the market. American electric vehicle market.
